In the Summer of 1999, the FOMC Became Concerned That

question 164

Multiple Choice

In the summer of 1999, the FOMC became concerned that ____

• A) robust economic growth would trigger higher inflation.
• B) robust economic growth would trigger deflation.
• C) weak economic growth would trigger higher inflation.
• D) weak economic growth would trigger deflation.
• E) interest rates were volatile.

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Definitions:

Technological Improvements

Advances in technology that enhance productivity, efficiency, and quality in goods and services.

Demand Falls

A situation where the quantity demanded of a product decreases, often due to changes in price, income, or preferences.

Costs Of Production

All expenses incurred in the creation of goods or services, including raw materials, labor, and overhead costs.

Increasing Cost Industry

An increasing cost industry is one in which production costs rise as the industry's output increases, often due to scarce resources or increasing input prices.